United States Steel Corporation (NYSE: X) stock price persists in a short-term bullish trend above the key moving averages of 50-day and 200-day. A massive gap-up opening of over 24% in the Mid August turned the trend in the bulls’ favor and the stock price showed continuous gains to surpass the 52-week high price.
Moreover, the price trend analysis elaborates that the X stock price showed accumulation to bottom out near the $20 level and struggled to surge above the key EMAs of the 50-day and the 200-day. The last quarterly earnings triggered a sell-off from the upper levels indicating bearish dominance.
Thereafter, the X price witnessed a 24% gap up followed by a surge of 10% in intraday. The massive jump in the stock price eroded away all the weakness in the short term and the price surged to surpass the 52-week high.
The United States Steel Corporation is yet to announce quarterly results on Thursday, 26th October 2023, which might affect the current price trend if the results miss the Wall Street Expectations.
Moreover, the technical indicators imply that the stock price trades above the 50-day and 200-day EMA indicating an optimistic trend prevalence. However, RSI shows a divergence between the price and momentum indicating a reversal is possible in the stock.
X stock’s option-chain analysis states that the current implied volatility in the market of X is 38.36% with a decrement of 0.77% in the last trading session. The at-the-money strike price has 775 open contracts on the PUT side and 7057 open contracts on the CALL side indicating the dominance of sellers at the current level.
X Stock Price Forecast For 2023
The average analyst price target for X stock in 2023 is $26.34, which represents a potential downside of 20.79% from the current price. However, there is a wide range of analyst price targets between $14.36 to $40.
The most optimistic analysts believe that X stock could reach $40 in 2023 indicating an upside potential of over 20.30%. If global steel consumption grows strongly and the United States Steel Company is able to meet the demands successfully, a rise in stock price can be seen.
X Stock Price Showed Sharp Selling Below Key EMAs
The overall technical indicators including the RSI and MACD signal a 90% “buy” with a strengthening short-term outlook on maintaining the current direction.
Conclusion
X stock price is in a bullish trend after a 24% gap-up in mid-August. It has surpassed the 52-week high and trades above the key EMAs. However, the RSI shows a divergence that may signal a reversal. The quarterly results on October 26th may also affect the price trend.
The option-chain analysis shows more PUT contracts than CALL contracts at the current level, indicating sellers’ dominance. The implied volatility is 38.36% with a slight decrease. Currently, X stock is optimistic but faces some risks in the short term.
Technical Levels
- Support Levels: $31.58 and $30.01
- Resistance Levels: $33.65 and $35.83
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/10/14/x-stock-witnessing-divergence-a-big-fall-about-to-hit-x-stock/